Remember Conan O’Brien’s tour, and how he launched it with one Tweet? Think about how much commerce is initiated now through the recommendation of friends through social media. These are examples of Influence Marketing.

I recently had the opportunity to exchange a few emails with Azeem Azhar, the CEO of a startup called PeerIndex that is focused on “Influence Marketing”. Founded in 2009, the company provides a service that helps consumers benefit from their passions, interests and influence particularly with respect to the services they get from companies and for brands and agencies to better identify effective and interested word-of-mouth advocates, something they call “Influencers”. It’s a service similar to the other big player in the place, Klout, with a unique spin.

According to Azhar “Influence marketing is going to be huge – and will become an essential part of the marketing mix over the coming years. In essence, influence marketing recognises that buyers trust other buyers, their friends and experts they know. “

A recent McKinsey report shed light on the trend indicating that word-of-mouth recommendations may be the primary reason for purchases in 20-50% of buying decisions. Further adding to the buzz, Forrester stated that 80% of all B2C and B2B purchases there is some form of word-of-mouth recommendation at play during the purchase cycle. If venture funding is any indication of the success, Klout, with its more than $40 million, leads the pack of companies looking to capitalize on this fast growing trend. Yet Klout isn’t alone in this fast moving sector. Several other start-up companies are quickly adding their own unique approaches.

We’ll see of this particular startup does anything, but the idea of influence marketing through social media is something that every company needs to consider.

Social media has forever changed the way that many businesses conduct marketing campaigns. In fact, it has changed how many companies perceive marketing in general. How? There are a number of ways but below are the top 5 ways that social media marketing has affected strategies that businesses choose to promote their products and services.

1. Social media has definitely affected the way that companies deal with their target audience. Because of social media, you can better understand what your audience wants and learn about these wants in real-time. Facebook and Twitter give you instant access to people in the here and now. You can find out what they want and give it to them all in just a few moments time.
2. You also have a direct link to your audience now. You can effectively cut out the middle man and deal with your customers on a more personal level. This allows for more straightforward conversations and enables your audience to be more honest with you about their needs.
3. Because you have the ability for real-time conversation, you also have the ability to measure your company’s progress much better. You can control your conversations and react instantly, giving your customers a more positive overall experience with your business.
4. It goes without saying that social media enables you to enjoy different strategies with regards to advertising. It also enables you to engage your customers and allow them to be part of the conversation. You are no longer speaking to them – you are now speaking with them. Community engagement is crucial when it comes to overall business success.
5. You can now influence your customers as an expert in your field. Through blogs and other social media interaction, you can provide your customers with information that they need. You have changed from a business owner to an influencer and expert which will tell your customers that you are serious about your business and know how to help them to solve their issues.

This article was written by Custard Media, the UK’s leading social media marketing agency.